The Bolivian president will seek to reduce public spending, eliminate ministries, and close state-owned companies
With this definition, Paz sent clear signals that he will follow a management line similar to that of Argentine president Javier Milei, recognized worldwide for the significant results achieved in terms of fiscal balance, reduction of public spending, decline in poverty, sharp drop in inflation, and economic growth.
In his inaugural speech as president of Bolivia, right-wing Rodrigo Paz outlined the first lines of his government program and announced the launch of a "chainsaw plan" inspired by the model of Argentine president Javier Milei.
During the ceremony held at the Plurinational Legislative Assembly, Paz stated that Bolivia needs a deep change to overcome two decades of management dominated by Movimiento al Socialismo (MAS). In that context, he said: "Bolivia was socialist, socialism of the 21st century... We said: we're going to put Bolivia in the world and bring the world to Bolivia. Capitalism for all, capitalism to produce, capitalism to have resources."
The president explained that his administration will promote a comprehensive state reform to reduce public spending, eliminate ministries, and close state-owned companies considered inefficient or created for partisan purposes.
"We will promote a state reform that reduces unnecessary ministries and eliminates political positions. All those ministries and companies that are just jobs for party members will be closed," he stated before legislators, diplomats, and military leaders.
His "chainsaw plan" aims to replicate in Bolivia an adjustment strategy that seeks to end political patronage and implement a truly capitalist system, after decades of socialism.
The new head of state takes office in a challenging economic context, with a high fiscal deficit, falling international reserves, and an economy marked by crisis, shortages of foreign currency, and fuel.
Paz's speech marks a major political shift in Bolivia after twenty years of governments led by Movimiento al Socialismo (MAS), positioning the country within a right-wing current that already resonates in other nations of the region. With the announcement of his chainsaw plan, the president is betting on a structural change inspired by the Argentine case, considered an example of economic recovery.
